Publication date:
June 26, 2025
US Energy Sector Braces for Potential Impacts from Iran Strikes
The recent US bombing of Iran has raised concerns about potential disruptions to global energy markets and supply chains.
Geopolitics
The US bombing of Iran last weekend has sent shockwaves through global energy markets, with oil prices spiking and analysts warning of potential disruptions to supply chains and infrastructure.
While no major oil facilities were directly targeted in the strikes, the escalation of tensions between the US and Iran has heightened fears about the security of key energy assets and shipping routes in the region. The Strait of Hormuz, through which approximately 20% of global oil supplies pass, is seen as particularly vulnerable to any retaliatory actions by Iran.
Energy traders and analysts are closely monitoring the situation for signs of how it may impact global oil and gas supplies in the coming weeks and months. Some experts have warned that even if physical infrastructure remains intact, the heightened geopolitical risk could lead to higher insurance and shipping costs that drive up energy prices.
Meanwhile, US energy companies with operations or interests in the Middle East are reportedly reviewing their security protocols and contingency plans. Several major oil firms have already begun evacuating non-essential personnel from sites in Iraq and elsewhere in the region as a precautionary measure.
The bombing has also reignited debates about US energy independence and security. Some politicians and industry groups have called for increased domestic oil and gas production to reduce reliance on Middle East energy supplies. However, environmental organizations argue this would be counterproductive to climate goals and that accelerating the transition to renewable energy is a better long-term solution.
As the situation continues to evolve, energy market participants will be watching closely for any signs of escalation or de-escalation that could impact global energy flows. Analysts say volatility is likely to remain elevated in oil and gas markets until there is more clarity on the longer-term fallout from the US strikes.
While no major oil facilities were directly targeted in the strikes, the escalation of tensions between the US and Iran has heightened fears about the security of key energy assets and shipping routes in the region. The Strait of Hormuz, through which approximately 20% of global oil supplies pass, is seen as particularly vulnerable to any retaliatory actions by Iran.
Energy traders and analysts are closely monitoring the situation for signs of how it may impact global oil and gas supplies in the coming weeks and months. Some experts have warned that even if physical infrastructure remains intact, the heightened geopolitical risk could lead to higher insurance and shipping costs that drive up energy prices.
Meanwhile, US energy companies with operations or interests in the Middle East are reportedly reviewing their security protocols and contingency plans. Several major oil firms have already begun evacuating non-essential personnel from sites in Iraq and elsewhere in the region as a precautionary measure.
The bombing has also reignited debates about US energy independence and security. Some politicians and industry groups have called for increased domestic oil and gas production to reduce reliance on Middle East energy supplies. However, environmental organizations argue this would be counterproductive to climate goals and that accelerating the transition to renewable energy is a better long-term solution.
As the situation continues to evolve, energy market participants will be watching closely for any signs of escalation or de-escalation that could impact global energy flows. Analysts say volatility is likely to remain elevated in oil and gas markets until there is more clarity on the longer-term fallout from the US strikes.
